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Reuters Market Eye - Shares in public sector banks fall on concerns about liquidity in the banking system after the government set its target for gross market borrowing at 6.29 trillion rupees in 2013/14, above estimates of less than 6 trillion rupees.
The government also announced a capital infusion of 140 billion rupees for public sector banks, below market estimates for 200 billion rupees, dealers said.
Private sector lenders also fall, with ICICI Bank (ICBK.NS) losing almost 4 percent, after Finance Minister P. Chidambaram proposed to extend a scheme that provides farmers with low cost loans to private banks.
Reporting by Manoj Dharra